Guest Noodle Posted July 19, 2010 Share Posted July 19, 2010 Fact is manufacturers are giving massive incentives to dealers to sell new cars, which can make it cheaper than a used car, and the manufacturer will offer better finance rates on new cars making the total cost less. A dealer having a used one on the forecourt more expensive than a new one encourages buyers to buy new also. It's crazy times, but not surprising. Anecdotally, my brother in law is a car dealer and has been told he can no longer leave purchases at the auction house, they must be collected on the day of purchase because they have so much unsold stock. This is what I thought. Scrapage got rid of my usual Rolls-Royce purchase, but the manufacturers are struggling now to sell new ones so this temporary(?) circumstance has arisen in a manipulated market. Quote Link to comment Share on other sites More sharing options...
Padraig Posted July 19, 2010 Share Posted July 19, 2010 If something seems too good to be true....... Quote Link to comment Share on other sites More sharing options...
xux42 Posted July 19, 2010 Share Posted July 19, 2010 Fact is manufacturers are giving massive incentives to dealers to sell new cars, which can make it cheaper than a used car, and the manufacturer will offer better finance rates on new cars making the total cost less. A dealer having a used one on the forecourt more expensive than a new one encourages buyers to buy new also. It's crazy times, but not surprising. Anecdotally, my brother in law is a car dealer and has been told he can no longer leave purchases at the auction house, they must be collected on the day of purchase because they have so much unsold stock. Sometimes deals are genuinely crazy. In 1999 we bought '£2500' worth of carpets (6 rooms) from Allied Carpets, qualifying for 50% off (£1250 net). Great, job done. "But wait", said the saleman, "Add Scotchguard and buy better underlay to get the total up to £3000, then you get 60% off" (£1200 net). They paid us £50 to scotchguard all the carpets & have luxury underlay throughout. You couldn't make it up. Why they are still in business is a mystery to me. Quote Link to comment Share on other sites More sharing options...
xux42 Posted July 19, 2010 Share Posted July 19, 2010 (edited) If something seems too good to be true....... It doesn't mean it is (see above) Edited July 19, 2010 by xux42 Quote Link to comment Share on other sites More sharing options...
Get A Grip Posted July 19, 2010 Share Posted July 19, 2010 If something seems too good to be true....... Indeed, but in this case the deal 'on offer' only exists in toodims (and his parents) head. Quote Link to comment Share on other sites More sharing options...
exiges Posted July 19, 2010 Share Posted July 19, 2010 In mid-2008 when the crunch hit, Aston Martin were trying to shift all their old 4.3litre engined V8 Vantages, coupe + convertibles. You could pick one up, brand new for as little as £52k (list price was £86k). Most main dealers had used cars much higher. Used now, those "£52k cars" are still fetching over that price.. Quite the money spinner at the time. Cars are a funny old market. Quote Link to comment Share on other sites More sharing options...
toodimm Posted July 19, 2010 Author Share Posted July 19, 2010 And the spot the scam award goes to oldsport! Honourable mentions go to BLOW FLY, South Lorne, eek, and 1888 for trying to point this out to me earlier in the post, unfortunately I didn't listen to them properly, for which I apologise. Yup PCP is the funding plan. The salesman categorically stated that we could take the money elsewhere at the end of the two years, so I guess I will be giving him a nasty call tomorrow. Thank you so much for pointing this out. Quote Link to comment Share on other sites More sharing options...
toodimm Posted July 19, 2010 Author Share Posted July 19, 2010 Don't spoil it for him. I've tried to explain it to him three times and now really think they should go for the deal. When in two years time they discover they have spent £11,000 and have no car I believe they might start listening to us. Meanwhile lets let him believe he's got a great deal Thanks for trying to steer me right, sorry that I didn't take note of what you were trying to say. It would have been really helpful if you could have said something like: 'I know about these deals you should be aware that you will not get your money back in cash, but in credit to use with the garage when you part exchange'. Looking back on the conversations that took place with the salesman, in the light of the advice I have received here, I cannot say that he outright lied, but he certainly misrepresented the deal. He said things like "At the end of the two years we will buy the car back from you and you can use the money to buy a new car from us, or you can walk away and buy a car from somewhere else". My mum is certain that he explicitly said that they would get the money back in cash at the end of the two years, however I guess this is how good salesmen work, say something that it is easier to misinterpret than to interpret correctly. I wonder if there is any mileage (pardon the pun) taping him talking about this deal? Quote Link to comment Share on other sites More sharing options...
_w_ Posted July 20, 2010 Share Posted July 20, 2010 I wonder if there is any mileage (pardon the pun) taping him talking about this deal? It would be nice if you posted an update about it tomorrow. Quote Link to comment Share on other sites More sharing options...
blue skies Posted July 20, 2010 Share Posted July 20, 2010 The big thing about all great deals is will they deliver? Most companies just before they go bankrupt offer unbelivable deals. Why? they know they are going under but realize they can suck so money in to line there pockets :angry: Quote Link to comment Share on other sites More sharing options...
bearORbullENIGMA Posted July 20, 2010 Share Posted July 20, 2010 Sometimes deals are genuinely crazy. In 1999 we bought '£2500' worth of carpets (6 rooms) from Allied Carpets, qualifying for 50% off (£1250 net). Great, job done. "But wait", said the saleman, "Add Scotchguard and buy better underlay to get the total up to £3000, then you get 60% off" (£1200 net). They paid us £50 to scotchguard all the carpets & have luxury underlay throughout. You couldn't make it up. Why they are still in business is a mystery to me. Because they con people like you into thinking they've gotten a bargain. Loads of places pretend that their RRP is double what is should be, so that they can give you supposedly half-price offers. Quote Link to comment Share on other sites More sharing options...
MongerOfDoom Posted July 20, 2010 Share Posted July 20, 2010 Are car manufacturers really still in this much trouble? Or have I just been the victim of good salesman ship? Interested in any input from you all This is not a new phenomenon. When I looked for a new car some six years ago, a new Toyota also cost approximately the same as a used one (cash price). As far as I could tell, it was because the second-hand prices were over-optimistic, and did not make any sense (e.g. two similar nearly new cars were priced exactly the same, but one had 15k more miles on it). My advice would be not to consider buying a second-hand car from the dealer unless you are prepared to haggle. It is probably better to use other manufacturer's new prices as a comparison, and not the same dealer's 2nd hand prices. BTW, some people on here seem to think that buying a new car never makes financial sense. This is simply wrong, in the same way that buying shares at any price is (because nobody would pay more for them than they are worth, so they must be priced correctly). It is also wrong in the same way as always buying new would be. Quote Link to comment Share on other sites More sharing options...
Guest Noodle Posted July 20, 2010 Share Posted July 20, 2010 This is not a new phenomenon. When I looked for a new car some six years ago, a new Toyota also cost approximately the same as a used one (cash price). As far as I could tell, it was because the second-hand prices were over-optimistic, and did not make any sense (e.g. two similar nearly new cars were priced exactly the same, but one had 15k more miles on it). My advice would be not to consider buying a second-hand car from the dealer unless you are prepared to haggle. It is probably better to use other manufacturer's new prices as a comparison, and not the same dealer's 2nd hand prices. BTW, some people on here seem to think that buying a new car never makes financial sense. This is simply wrong, in the same way that buying shares at any price is (because nobody would pay more for them than they are worth, so they must be priced correctly). It is also wrong in the same way as always buying new would be. Just done this. SHOCKING! Corsa 1.3 cdti is £14k at a minimum from Vauxhall before extras. The van is £13k+VAT. Then go to Lookers, same thing is £8.5+VAT. It's all over the shop this pricing. That said, recommend the 95bhp Corsa 1.3 cdti, it's combined fuel consumption is 76mpg, extra-urban is 88.2mpg!!!! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 20, 2010 Share Posted July 20, 2010 Just done this. SHOCKING! Corsa 1.3 cdti is £14k at a minimum from Vauxhall before extras. The van is £13k+VAT. Then go to Lookers, same thing is £8.5+VAT. It's all over the shop this pricing. That said, recommend the 95bhp Corsa 1.3 cdti, it's combined fuel consumption is 76mpg, extra-urban is 88.2mpg!!!! would you knowingly buy a thing made by the US GOvernment? Quote Link to comment Share on other sites More sharing options...
Guest Noodle Posted July 20, 2010 Share Posted July 20, 2010 would you knowingly buy a thing made by the US GOvernment? Made by scousers isn't it? 88.2mpg!!! Now, if folk drove motors like this . . . peak oil wouldn't be such a bother. Still a bother, but not so much. 88.2mpg!!! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 20, 2010 Share Posted July 20, 2010 Made by scousers isn't it? 88.2mpg!!! Now, if folk drove motors like this . . . peak oil wouldn't be such a bother. Still a bother, but not so much. 88.2mpg!!! yeah but, every damn mile will be monitored by NASA, you wont know if its wired for False Flag terror, and as for having sex in the back....well..maybe you like flashing on NSAweb!! Quote Link to comment Share on other sites More sharing options...
Guest Noodle Posted July 20, 2010 Share Posted July 20, 2010 yeah but, every damn mile will be monitored by NASA, you wont know if its wired for False Flag terror, and as for having sex in the back....well..maybe you like flashing on NSAweb!! Just take the right fuse out. Quote Link to comment Share on other sites More sharing options...
aa3 Posted July 20, 2010 Share Posted July 20, 2010 People who sell used cars are at wishing prices just like houses. I've seen used cars with asking prices higher than the same new car! There is also a powerful deflationary force in cars as the automation brings down prices. So people do not realize how much their used vehicle has depreciated if there has been significant falls in new car prices. Another thing happening is new cars are getting so cheap in some cases that it does not make sense to keep repairing an old car. I believe cars will become disposable like computers are. The car will last maybe 150,000km then you buy a new one. Quote Link to comment Share on other sites More sharing options...
Guest Noodle Posted July 20, 2010 Share Posted July 20, 2010 People who sell used cars are at wishing prices just like houses. I've seen used cars with asking prices higher than the same new car! There is also a powerful deflationary force in cars as the automation brings down prices. So people do not realize how much their used vehicle has depreciated if there has been significant falls in new car prices. Another thing happening is new cars are getting so cheap in some cases that it does not make sense to keep repairing an old car. I believe cars will become disposable like computers are. The car will last maybe 150,000km then you buy a new one. Yes, used prices are quite mental, but I've watched a few over the past month and they ain't sold. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 20, 2010 Share Posted July 20, 2010 People who sell used cars are at wishing prices just like houses. I've seen used cars with asking prices higher than the same new car! There is also a powerful deflationary force in cars as the automation brings down prices. So people do not realize how much their used vehicle has depreciated if there has been significant falls in new car prices. Another thing happening is new cars are getting so cheap in some cases that it does not make sense to keep repairing an old car. I believe cars will become disposable like computers are. The car will last maybe 150,000km then you buy a new one. thats not very green...and you propose putting thousands of used dealers out of business, as well as the Exchange and Marts of this World. I heard somewhere that the emissions produced just making the car...steel, rubbers, plastics et al, then production and marketing of it are higher than the entire emmissions through combustion of fuels for its entire life. Quote Link to comment Share on other sites More sharing options...
aa3 Posted July 20, 2010 Share Posted July 20, 2010 thats not very green...and you propose putting thousands of used dealers out of business, as well as the Exchange and Marts of this World. I heard somewhere that the emissions produced just making the car...steel, rubbers, plastics et al, then production and marketing of it are higher than the entire emmissions through combustion of fuels for its entire life. I can believe that. Especially in an area where the parts are being manufactured that is powered by coal. But remember I'm someone who has a prediction that electrical use will rise 14 times between 2000 and 2100. So far after 10 years we are on pace! I do not care for the green ideology of using less energy. The whole thrust of our civilization has been to use more energy. I believe there is a direct relationship between energy use and wealth. Want to be wealthier and we will have to use more energy. My prediction of cars becoming disposable as the century progresses will have a big but probably very gradual impact on used car dealers and auto repairmen. Quote Link to comment Share on other sites More sharing options...
Guest Noodle Posted July 20, 2010 Share Posted July 20, 2010 I can believe that. Especially in an area where the parts are being manufactured that is powered by coal. But remember I'm someone who has a prediction that electrical use will rise 14 times between 2000 and 2100. So far after 10 years we are on pace! I do not care for the green ideology of using less energy. The whole thrust of our civilization has been to use more energy. I believe there is a direct relationship between energy use and wealth. Want to be wealthier and we will have to use more energy. My prediction of cars becoming disposable as the century progresses will have a big but probably very gradual impact on used car dealers and auto repairmen. But they are disposable now. Like ones that blow up at 100k miles or get rapped round lamposts and stuff. Look at the CAT D write offs (my idea of a luxury car). Insurers seem to write cars off because a a wee nudge and a dent. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 20, 2010 Share Posted July 20, 2010 I can believe that. Especially in an area where the parts are being manufactured that is powered by coal. But remember I'm someone who has a prediction that electrical use will rise 14 times between 2000 and 2100. So far after 10 years we are on pace! I do not care for the green ideology of using less energy. The whole thrust of our civilization has been to use more energy. I believe there is a direct relationship between energy use and wealth. Want to be wealthier and we will have to use more energy. My prediction of cars becoming disposable as the century progresses will have a big but probably very gradual impact on used car dealers and auto repairmen. couldnt agree more. still, wasting energy in a glut is just as bad as wasting it any time...there will come a day when you wished you didnt waste so much. there is no reason why a car built today wont be around 1000 years from now...if it was designed to last. Fashion is what dictates many car sales, and law. I mean...who actually likes the new Audis with the teenager fairy lights on the front...I gather the EU do, Bankers and other insecure flash Harrys' do.... I mean...why is there a need for bright lights front and rear ALL the time the car is driven...How many lives have been saved by this nonsense. Quote Link to comment Share on other sites More sharing options...
Clocker Posted July 20, 2010 Share Posted July 20, 2010 Made by scousers isn't it? Only those scousers living within commuting distance of Zaragosa, Spain. Quote Link to comment Share on other sites More sharing options...
Guest Noodle Posted July 20, 2010 Share Posted July 20, 2010 Only those scousers living within commuting distance of Zaragosa, Spain. Which Vauxhalls do they still make in the UK? Please tell me they still make Vauxhalls in the UK. Quote Link to comment Share on other sites More sharing options...
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